Car dealers propose easing warranty restrictions on maintenance, repair services after probe by Hong Kong’s competition watchdog
- Plan offered by seven dealers of 17 car brands, such as BMW and Toyota, is likely to be approved by Competition Commission
- Ringo Lee, president of Hong Kong Automobile Association, estimates car owners could save as much as 40 per cent on maintenance costs
Car owners will have the freedom to choose where to service their vehicles without fear of losing their warranties under a proposal by major distributors who were forced into a U-turn after an investigation by Hong Kong’s competition watchdog.
The Competition Commission on Monday said it was inclined to accept the offer made by seven dealers of 17 car brands to amend the warranty terms and conditions, but noted that it would hear more views from interested parties by August 15.
The proposal won immediate praise from car owners. Ringo Lee Yiu-pui, president of the Hong Kong Automobile Association, estimated that car owners could save as much as 40 per cent on maintenance costs at independent workshops.
The commission said its investigation had found that car distributors had imposed restrictions requiring owners to seek maintenance and repair services at authorised centres only, regardless of whether a vehicle part was covered by their warranties.
Car owners who did not follow the rules could have their warranties revoked.
“The commission considers that these restrictions may deter passenger car owners from using independent car repair workshops during the warranty period,” the independent statutory body said in a statement.
“This would likely limit the ability of independent car repair workshops to compete with authorised repair centres. This may also reduce car owners’ choice of service and ultimately lead to higher prices for maintenance and repair services,” it added.
